Top value fund managers are ready for the small cap bear market to be done

During the bull market, small caps haven't been performing well, but some believe that could be about to change. Breach Inlet Founder and Portfolio Manager Chris Colvin and Gradient Investments President Michael Binger both expect small caps to take off. Q1 2020 hedge fund letters, conferences and more However, not everyone is convinced. BTIG strategist Read More

U.S. stock-index futures mixed: U.S. stock-index futures were swinging between gains and losses on investor concerns over an imminent military strike against Syria. In economic news, the U.S. trade deficit rose 13.3 percent in July to $39.1 billion, according to the Commerce Department. Economists were expecting the trade deficit to increase to $38.7 billion. Up ahead, the Federal Reserve will publish the latest edition of its regional economic snapshot, the Beige Book, at 2 P.M. ET.

European markets fall: European markets are heading for the second straight day of losses amid the increasing likelihood of U.S. intervention in Syria, after President Barack Obama secured more support in the U.S. Congress for military action against the Syrian government that allegedly used chemical weapons against civilians. On the economic front, second quarter euro zone GDP was revised up to -0.5 percent from -0.7 percent. The FTSE 100 (INDEXFTSE:UKX) edged 0.5 percent lower to 6435.47 points. The CAC 40 (INDEXEURO:PX1) lost 1.1 percent to 3931.60 points, while the DAX (INDEXDB:DAX) shed 1 percent to 8102.94. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.9 percent in recent trading.

Asian stocks end mixed: Asian markets struggled for direction amid growing fears of U.S. military intervention in Syria. The NIKKEI 225 (INDEXNIKKEI:NI225) crossed the 14,000 mark as the yen weakened to 99.8 per dollar. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) reversed early morning losses to end higher after data from HSBC’s services purchasing manager’s index showed that growth in China’s services sector hit a five-month high in August. The S&P/ASX 200 (INDEXASX:XJO) index fell in trade amid broad declines in banking stocks.

Stocks in News:

Navistar International Corp (NYSE:NAV)

Navistar International Corp (NYSE:NAV) swung to a fiscal third-quarter loss and said it would cut 500 jobs by the end of the fiscal 2013, sending shares sharply lower in recent pre-market trading. The commercial truck manufacturer posted a loss of $247 million, or $3.06 per share, compared to a year-ago profit of $84 million, or $1.22 per share. Excluding one-time items, Navistar reported a loss of $2.94 a share. Revenue dropped 12 percent to $2.9 billion. Analysts had most recently projected a loss of $1.30 on sales of $2.92 billion.

Dollar General Corp. (NYSE:DG)

Dollar General Corp. (NYSE:DG)’s second-quarter profit rose to $245.5 million, or 75 cents a share, from $214.1 million, or 64 cents a share, in the same period last year. Adjusted to exclude certain items, the retail company reported earnings of 77 cents per share, up from 69 cents a year in the year-ago period. Revenue increased to $4.4 billion from $3.9 billion a year earlier. Analysts had expected earnings of 74 cents a share on sales of $4.4 billion. For the full-year, the company expects earnings per share to be in a range of $3.15 to $3.22. Shares in Dollar General surged in pre-market trading.

Apple Inc. (NASDAQ:AAPL)

Cantor Fitzgerald initiated coverage of Apple Inc. (NASDAQ:AAPL) with a “buy” rating and a target price of $777. Cantor said that the tech giant is “in the midst of a recovery,” and that current valuations were attractive. Apple shares closed Tuesday at $488.58, and rose 2 percent in pre-market trading.

LinkedIn Corp (NYSE:LNKD)

Shares of the social-network company fell in pre-market trading after it unveiled plans to sell $1 billion of stock in a follow-on offering. The company is planning to sell 4.17 million shares of its Class A common stock, according to a prospectus filed with the U.S. Securities and Exchange Commission yesterday. LinkedIn Corp (NYSE:LNKD) said it will use the proceeds to further expand its product slate and expand abroad. https://www.valuewalk.com/2013/09/linkedin-corp-lnkd-plans-to-offer-1b-in-stock/

Rupert Murdoch’s News Corp (NASDAQ:NWSA) said it sold its Dow Jones Local Media Group, which operates eight daily and 15 weekly community newspapers, to a unit of Fortress Investment Group LLC for an undisclosed sum. The media company had acquired the collection of small newspapers and niche publications as part of its 2007 acquisition of Dow Jones & Co., publisher of The Wall Street Journal. https://www.valuewalk.com/2013/09/news-corp-sheds-dow-jones-local-media-group/

H & R Block Inc (NYSE:HRB)

H & R Block Inc (NYSE:HRB) reported an adjusted loss of 40 cents per share on revenue of $127 million for its fiscal first-quarter. Analysts were expecting a loss of 37 cents per share on sales of $98.4 million. In addition, the tax-services provider said that its plan to shed its banking unit will be delayed due to delay in getting necessary regulatory approval. Shares tumbled in recent trading.

Herbalife Ltd. (NYSE:HLF)

Post Holdings Inc (NYSE:POST) CEO William Stiritz reported a 5 percent stake in Herbalife Ltd. (NYSE:HLF) in a regulatory filing late Tuesday. Stiritz disclosed he owned about 5.4 million Herbalife shares, making him the fourth largest shareholder after the stock purchase A Post Holdings representative said Stiritz’s investment in the nutritional supplement maker was a personal investment decision and not related to the company. https://www.valuewalk.com/2013/09/william-stiritz-stake-in-herbalife/

Abhijit Sen is a financial writer, commentator, with close to a decade's experience in analyzing global equity, commodity and Forex markets. He is based in India, and can be reached at [email protected]

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